Barre Plan

Summary of Barre Plan

A scheme to enhance the European economy through monetary unification. Articulated in February 1969 by Raymond Barré, then vice-president of the European Community Commission, and later premier of France, essentially the plan provided that each member state of the European Community would set aside a portion of its monetary reserves to aid, as the need arose, other members suffering balance of payments difficulties. Through consultations between borrower and lender, efforts would be undertaken to restore financial equilibrium. The loan would mature after three months, unless arrangements between the parties involved resulted in a longer repayment schedule. In addition, the plan advocated greater overall alignment of European economies and urged that central banks, rather than governments, be the focus for negotiations on economic matters.

The Barré Plan was adopted by the EEC Council of Ministers in July 1969.

(Main Author: William J. Miller)